EUR/USD Price Analysis: Reverses recent gains to near 1.0680, Eurozone final CPI eyed

EUR/USD retraces two-day gains due to market caution before the Fed decision.
MACD shows a pattern of convergence below the signal line; suggesting a reversal in momentum.
The immediate support appears around 1.0650 psychological level aligned with the previous week’s low.

Akhtar Faruqui FXStreet

EUR/USD snaps the two-day winning streak, trading lower around 1.0680 during the Asian session on Tuesday. The pair is facing downward pressure due to the market caution ahead of the US Federal Reserve’s (Fed) policy decision.

The data of the Harmonized Index of Consumer Prices (HICP) and Core HICP from the Eurozone is likely to be released later in the day. Investors will observe these datasets, seeking further impetus on the economic situation in the bloc.

The immediate support for the EUR/USD pair appears around the 1.0650 psychological level, followed by the previous week’s low at 1.0631.

If bearish sentiment exerts pressure, the pair could potentially approach the next support level near the 1.0600 psychological level.

On the upside, the EUR/USD pair could face a barrier around the 1.0700 psychological level, lined up with the nine-day Exponential Moving Average (EMA) at 1.0705.

A firm break above the latter could lead the bulls to explore the region around the 14-day EMA at 1.0730, following the 23.6% Fibonacci retracement at 1.0783 level.

The Moving Average Convergence Divergence (MACD) line remains below the centerline, but it exhibits a pattern of convergence beneath the signal line. This pattern implies the potential for a reversal in momentum, indicating that the recent downtrend may be losing strength.

However, traders of the EUR/USD pair will likely observe the 14-day Relative Strength Index (RSI), which indicates bearish momentum in the short term as it lies below the 50 level.

EUR/USD: Daily Chart

EUR/USD: additional important levels

Overview
Today last price	1.0684
Today Daily Change	-0.0008
Today Daily Change %	-0.07
Today daily open	1.0692

Trends
Daily SMA20	1.0771
Daily SMA50	1.0924
Daily SMA100	1.0892
Daily SMA200	1.0829

Levels
Previous Daily High	1.0699
Previous Daily Low	1.0655
Previous Weekly High	1.0769
Previous Weekly Low	1.0632
Previous Monthly High	1.1065
Previous Monthly Low	1.0766
Daily Fibonacci 38.2%	1.0682
Daily Fibonacci 61.8%	1.0672
Daily Pivot Point S1	1.0665
Daily Pivot Point S2	1.0638
Daily Pivot Point S3	1.0621
Daily Pivot Point R1	1.0709
Daily Pivot Point R2	1.0726
Daily Pivot Point R3	1.0753

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.